Gold extends rally on sustained buying

Gold extends rally on sustained buying
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First Published: Thu, Jan 01 2009. 01 14 PM IST
Updated: Thu, Jan 01 2009. 01 14 PM IST
Mumbai: Gold gained for a second day in a row on Thursday on sustained buying amid lack of cues from international markets, analysts said.
“Gold is still well supported due to geo-political tensions,” said Kunal Shah, an analyst at Nirmal Bang Commodities.
Sentiment is still positive and no one would like to go short on the first day (of the year) in gold, said Harish Galipelli, head of research with Karvy Comtrade in Hyderabad.
MCX gold futures gained more than 29% in 2008 and hit an all-time high of Rs14,320 per 10 grams on 10 October as investors, roiled by a deepening global financial turmoil, sought safety in precious metals.
For 2009, gold may target Rs15,500 per 10 grams on expectations of a weaker rupee and support from strong crude oil, Galipelli added.
Overseas markets are closed for the New Year holiday and will reopen on Friday.
Open interest for February gold on MCX was at 16,921 lots, marginally up from 16,900 a day earlier. Volume on Wednesday was 38.03 kgs.
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First Published: Thu, Jan 01 2009. 01 14 PM IST
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